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Wisconsin Department of Revenue

 Petition for Compromise of Taxes

  1. What is a compromise of taxes?
  2. Who qualifies for a compromise of taxes?
  3. How can I file a Petition for Compromise of Taxes?
  4. Where should completed petitions be sent?
  5. Can I have my petition acted upon more quickly by sending it directly to Madison rather than to a district office?
  6. How complicated is the Form A-212? Do I need an accountant or an attorney to help me complete it?
  7. Is any other paperwork required besides Form A-212?
  8. Under what conditions will the Department accept a petition?
  9. How is my ability to pay in full determined?
  10. What happens after I have filed a petition for compromise?
  11. How will I be notified if my petition has been accepted?
  12. What happens if my petition is accepted?
  13. After I have paid the compromise, am I done with this matter forever?
  14. If I pay the compromised amount and apply for a loan, what will the credit reporting agencies find on my record?
  15. What happens if I would like to settle my taxes for an amount less than the total due but cannot come up with a lump sum payment?
  16. I know someone whose situation was similar to mine. That person's compromise was accepted. Why was mine rejected?
  17. Can I petition for a compromise more than once?
  18. If I am forced to pay the full amount of my tax liability, I may have to change my life style. Is that fair?
  19. If my petition is rejected, can I ask for a review of that decision?
  1. What is a compromise of taxes?

    A compromise of taxes is a process by which a taxpayer may be able to satisfy a tax liability for an amount that is less than the total obligation.

  2. Who qualifies for a compromise of taxes?

    Anyone whose resources are so limited or whose tax obligation is so large that they can never repay the full liability, even over time, may qualify. The taxpayer may be an individual, corporation, limited liability company, partnership, or any other legal entity with a tax obligation.

  3. How can I file a Petition for Compromise of Taxes?

    You must complete Form A-212. This form is also available from any Department office. You may request the form in person, by telephone, or by writing to the Department.

  4. Where should completed petitions be sent?

    If you are working with or have been contacted by one of our collection agents, the petition should be sent to that agent. If you are not working with an agent, send the petition to the district office nearest your residence. A list of our district offices and addresses can be found on the back page of Form A-212.

  5. Can I have my petition acted upon more quickly by sending it directly to Madison rather than to a district office?

    If you do not live near the Madison district office, sending the petition directly to Madison may slow the process. Each district supervisor is authorized, within limits, to act on petitions. Your petition will be acted upon more quickly by sending it to the office nearest your home.

  6. How complicated is the Form A-212? Do I need an accountant or an attorney to help me complete it?

    The form is designed to be self-explanatory. Most people should be able to complete it without professional assistance. Should you need assistance or have questions, any Department collection agent can advise you of the proper procedure.

  7. Is any other paperwork required besides Form A-212?

    Yes, in certain situations, other information is required as indicated on Form A-212. For example, if you own real estate, you must provide the latest real estate tax bill to verify the fair market value you have listed on Form A-212.

    You must also provide your latest statement from mortgage holders or other lenders for any liabilities that you have listed on Form A-212.

    The Department reserves the right to independently verify any information you provide through its own records or third-party contacts.

  8. Under what conditions will the Department accept a petition?

    The following conditions must be met:

    • You must be able to demonstrate that you cannot dispose of assets or borrow against them to pay your liability in full.

    • The income statement in Section 14 of Form A-212 must demonstrate that your monthly income is insufficient to fully pay your liability through installment payments.

  9. How is my ability to pay in full determined?

    The Department will look at your equity in any real or personal property; past, present, and future earning potential; the priority of other creditors; whether your current financial condition is likely to be temporary or permanent; your present life style; your ability to borrow; and any other factors the Department considers relevant in making a determination.

  10. What happens after I have filed a petition for compromise?

    If Form A-212 has been fully completed, the Department usually will act on it within 45 to 90 days after receiving it.

    Incomplete petitions or those which appear to understate the value of assets or overstate debts and expenses can cause delays.

    Any collection actions which have been commenced by the Department before your petition was filed, such as wage attachments, levies, or property seizures, will continue unless the Department believes it is in the Department's best interest to discontinue such action. No new collection actions will be commenced while your petition is being reviewed.

    Interest continues to accrue on any unpaid balance until paid.

  11. How will I be notified if my petition has been accepted?

    After reviewing Form A-212, the Department will send you a written response. The Department may:

    1. Accept your offer.
    2. Reject your offer but propose a counteroffer.
    3. Reject your offer and refer you to a Department collection agent to determine the best method to pay your liability.

  12. What happens if my petition is accepted?

    If the Department accepts a compromise offer, the amount must be paid in full within 10 days of your receipt of the Department's acceptance.

    In most cases, the Department will issue satisfactions of all outstanding delinquent tax warrants. If the compromise is also contingent on future activities you have agreed to, such as incurring no new delinquencies for a stated period of time, outstanding delinquent tax warrants will not be satisfied until all conditions of the compromise have been met.

  13. After I have paid the compromise, am I done with this matter forever?

    Most people are done. However, the Department may by law review your account within three years to determine if there has been a change in your financial condition which would enable you to pay the amount previously forgiven in the compromise settlement. If the Department finds that your financial situation has changed, you will be notified of a hearing to review whether the compromise should be reopened.

  14. If I pay the compromised amount and apply for a loan, what will the credit reporting agencies find on my record?

    If you had a delinquent tax lien filed, courthouse records will reflect that it has been satisfied.

  15. What happens if I would like to settle my taxes for an amount less than the total due but cannot come up with a lump sum payment?

    Submit a petition to the Department with an explanation of how you will pay the total offered. If your plan is reasonable, the Department may send you a letter committing to an acceptance of your petition upon completion of all of the terms that are negotiated.

    If you contemplate such a proposal, the Department will usually add other conditions to the agreement. Such conditions could include filing and paying current tax obligations as they become due, or other terms. Caution: A breach of any condition will immediately nullify the Department's commitment to compromise your account.

    A potential disadvantage to you is that if tax liens have been filed, they are not satisfied until all the terms and conditions of the negotiated offer have been fulfilled.

  16. I know someone whose situation was similar to mine. That person's compromise was accepted. Why was mine rejected?

    The Department judges each case individually based on all of the facts and information available to us.

  17. Can I petition for a compromise more than once?

    Yes. If you have previously petitioned for a compromise and that offer was not accepted, you may petition the Department at a later date. The Department is unlikely to view a second compromise offer more favorably than the first unless your financial condition has worsened, or you are increasing the amount of your offer.

  18. If I am forced to pay the full amount of my tax liability, I may have to change my life style. Is that fair?

    Yes. A petition for compromise is granted to those who could never pay their liability because of its size relative to their assets, income, and earning potential. The fact that you may have to change your life style and make payments for several years does not make you a compromise candidate.

  19. If my petition is rejected, can I ask for a review of that decision?

    Yes, requests for a second review of a rejected compromise should be directed to:

    Compliance Bureau Director
    Wisconsin Department of Revenue
    P.O. Box 8901
    Madison, WI 53708-8901

    The request for a second review must be in writing and should provide any information you believe would cause the Department to reconsider the acceptance of your compromise offer.

FOR MORE INFORMATION PLEASE CONTACT:

WISCONSIN DEPARTMENT OF REVENUE
Central Collection Section
P.O. Box 8901
Madison, WI 53708-8901
Phone: (608) 266-7879
Fax: (608) 261-8978
E-Mail Additional Questions

Last updated December 29, 2008